23/10/2017 World Business Report

A green light not just for Abe but for Abenomics.

His election win means that Japanese Prime Minister Shinzo Abe

can continue his economic reform programme.

Will Londoners be able to breath a little easier?

Today sees the introduction of a 10 pound a day -

about 13 dollars - charge for the most polluting

In a minute we'll find out if electric car maker Tesla

will begn to manufacture its cars in China.

the outlook for the world's third biggest economy will be shaped

That's because Japan's Prime Minister won another term

He framed the poll as an attempt to get public backing

for his handling of the threats from North Korea but his ambitious

and important economic reforms were also on the line.

His second stint as Prime Minister began in 2012.

And if the main stock index the Nikkei is anything to go by he's

been a good influence for the economy.

But one of the big problems is that whilst inflation has been going up,

To try and boost inflation Mr Abe has overseen

the latest part of which - worth almost $18 billion -

It will be spent on childcare and boosting productivity.

It's being paid for by a 2% increase in sales tax.

The plan to make it 10% from October 2019 was a big election issue.

Joining us now is Seijiro Takeshita, Professor of Management

and Information at University of Shizuoka.

The different reforms he has been trying to put into place, different

stimulus packages and reform, these are the three arrows he referred to.

But the reform one has not really worked yet. No it hasn't. It will

take some time. Transitions usually take some time. It needs to be

negotiated by social contacts. There should be focus on a particularly

after the first to arrows, that should be flowing into increases in

wages, which has not happened. And that is some reason that conception

has not improved. The ball is definitely on the court of the

corporate is, who should be raising wages. But why don't they? Actually,

firstly, it is the Conservatives of the company here. Risk avoidance is

their keyword. I don't think they are really finding the exact June of

the things that they really want to invest in. So from these two

reasons, they are still reluctant, especially with the ambiguity of

external factors. Corporate is not really jumping to make investments

at the moment. And where are the entrepreneurs? A lot of people say

the corporate tax rate, at 36%, that is not the kind of place you want to

start a new business. That is another reason why the opposition

fell. The whole party was saying that they will go to tax more on the

cash reserves by the corporate is, which is totally an absurd policy.

But what the government needs to do is to induce entrepreneurship. We

have a lot of inventions and innovation within companies, but we

need to have new entrepreneurs that should be propping up. But

unfortunately, the trend is going other ways, even for younger

generations, like new colleges. Seijiro Takeshita, Professor of

Management and Information at University of Shizuoka, good to talk

to you. Thank you for much. -- thank you very much.

Electric car maker Tesla reaffirmed on Sunday it is talking

with the Shanghai municipal government to set up a factory

in the region and expects to agree on a plan by the end of the year,

but declined to comment on a report that a deal has been reached.

Sharanjit Leyl is in our Asia Business Hub in Singapore.

Sharanjit, is this a real story? Is it happening? It is. Tesla

essentially confirmed that they wanted to build cars in China, but

has declined to comment on a Wall Street Journal report that a deal

had been agreed on. For one, there are a number of major hopes that

they will have two jump through to make such a deal happen. For

instance, China levies a pretty 5% duty on sales of imported vehicles,

and it is not allowed foreign automakers to establish wholly owned

factories in the country. Tesla also wants to expand its presence in

China's growing electric vehicle market, without promoting its

intellectual property or independence. There is a real worry

that if it links up with local manufacturers, as other foreign

firms have done, it will potentially had to share some of its technology

around electric vehicles. The Chinese government has considered

allowing foreign automakers to set up wholly owned factories in

free-trade zones in part to encourage lots more production of

electric and hybrid vehicles. They really have all these targets which

they want to hit to try and lower emissions. It is incredibly polluted

air. The government call these -- calls these new and 80 vehicles, are

essentially they want to meet ambitious sales quotas that is. --

new energy vehicles. It has said that this could be produced in

free-trade areas, which would give the $50 billion electric cart market

a big shot against its rivals in the fast-growing area. Thank you very

much for that, Sharanjit. Many of the world's big cities

suffer from high pollution levels and London is bringing

in a new measure to try From today, motorists who drive

the highest polluting cars into the centre of London will have

to pay an extra daily ?10 emissions surcharge - about 13 dollars -

almost doubling the cost of driving With me is Roger Nickells,

CEO of BuroHappold Engineering. You advise on their skin, didn't

you, and advise other cities on this order policy. Does it actually work?

Yes, because it raises consciousness and raises awareness. -- you add

bite on this, didn't you? This is great for a city to start taking

action. -- advised on this. It is not just a revenue raiser, but about

changing behaviour and creeping awareness, and allowing the city to

take stronger action is as time moves on. What can we do? Are the

stronger actions Bozdag is this just the beginning? At the moment, the

mayor is at consultation and tragic rate and emissions zone for London.

-- other strong actions? -- is this just the beginning? If you look at

cities like Berlin in Copenhagen, they have all taken strong action.

They have actually banned the highest pollution vehicles from

those city centres. Where does London rank

Copenhagen made this decision in 2008 will stop -- where does London

rank amongst these cities? The whole kind of philosophy for dealing with

this issue in London, I think, is not to make things worse. But that

is not strong enough for the challenge we face. Is this a

question of actually bringing pollution levels down to a certain

level? You know, we can live with a certain level, and it won't make

much difference, or you get Beijing levels, where it is really heavy,

and it won't come here, but we have lived with this for a while? We

would advise every city leader that this is not just a kind of plastic

issue. This is something very, very real. 9000 deaths in London

associated with pollution in the last year. And for every city to

remain economic and competitive, it is to create an environment where

people want to live. You have to create a kind of balance between

well-being, if you like, and the needs of the city. And people make

conscious decisions about where they want to be, and where they want to

live. And so city leaders can do all sorts of things to improve their

situation. Roger Nickells, thank you very a much indeed for joining us. A

quick moment to look at the markets. I did not even get the Nikkei up.

But it is up sharply. The other Asian markets are moving up because

of Shinzo Abe's victory in the election in Japan. You see the oil

price is up there, but just a touch, just half a percent. I'm not sure

what the thing at the bottom is. That is puzzling. We'll bring you

more information on that strange sign at the bottom of that board.

But we will see later.